An affilate of private equity firm Hellman & Friedman will acquire the education unit of SunGard Data Systems for $1.775 billion and combine it with Datatel, a portfolio company owned by Hellman & Friedman that makes administrative and academic software used by higher education institutions.
Once merged, SunGard Higher Education—which provides financial, human resources, fund-raising, and student data systems—and Datatel will create a company designed to grab more than 50 percent of the market for data management software services to clients in the education industry, according to Inside Higher Ed.
Current Datatel CEO John Speer III will head the newly merged entity, whose name will be announced once the deal closes, the companies announced in a joint statement on August 5. The new company will service more than 2,000 colleges, universities, foundations, and state educational systems.
SunGard is being represented on the deal by a Shearman & Sterling team led by New York–based M&A partner Clare O’Brien. Other Shearman lawyers working on the matter include global tax cohead Laurence Bambino, employee benefits practice leader John Cannon III, IP partner Samuel Waxman, tax partner Don Lonczak, and tax counsel Ansgar Simon.
The American Lawyer named O’Brien one of its Dealmakers of the Year in 2005 for her role advising Wayne, Pa.-based SunGard on its $11.3 billion buyout by a consortium of seven private equity firms. SunGard’s general counsel is Victoria Silbey; Jim Bennett serves as chief legal counsel for the company’s higher education unit.
Hellman & Friedman turned to longtime outside counsel Simpson Thacher & Bartlett to advise Fairfax, Va.-based Datatel on the deal. Palo Alto–based M&A partners Richard Capelouto and Chad Skinner are leading a team from the firm on the transaction that also includes capital markets partner William Brentani, IP partners Jeffrey Ostrow and Lori Lesser, tax head Steven Todrys, employee benefits partner Tristan Brown, credit partner Brian Steinhardt, and real estate counsel Krista McManus.
Simpson has been busy representing Hellman & Friedman over the past couple of years. Last week the firm advised Hellman & Friedman on the $3 billion sale of medical billing services company Emdeon to The Blackstone Group. In April, Simpson advised a unit of the private equity firm on the $2 billion sale of two software companies.
In 2010, Simpson also handled the private equity fund’s $1.4 billion sale of software and information services company Vertafore, the $2.13 billion sale of software development company Intergraph, and the $1.3 billion acquisition of building-supply manufacturer Associated Materials.
This article originally appeared on The Am Law Daily.